Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting September 22, 2025) are Punjab National Bank, and Larsen & Toubro. Let’s take a look:
Punjab National BankPNB has transitioned from a legacy-stressed balance sheet to a fundamentally stronger franchise, with asset quality concerns decisively addressed. The steady reduction in GNPA (3.78%) and NNPA (0.38%), coupled with robust PCR (90.3%), underpins earnings predictability. PNB reiterated its FY26 loan growth guidance of 11–12%, with management noting strong momentum in the Retail and MSME segments (+18% YoY). MSME growth is driven by cash-flow-based lending and digital initiatives, with NPAs remaining well-controlled at around 1%. At current valuations, PNB is trading at a discount compared to both private-sector peers and select public sector banks, providing a margin of safety. We expect PNB to maintain a stable RoA of 1% in FY27/28. Additionally, we project PNB to achieve a 12.8% CAGR in its loan book from FY25 to FY28.Larsen & ToubroL&T secures 2 Large orders (₹2,500–5,000 cr) for STATCOM, SCADA, and Mumbai-Ahmedabad Bullet Train project, reflecting strong execution in grid stability and high-speed rail — key themes in India’s infra push. L&T bags another significant order (₹1,000–2,500 cr) from NPCIL for nuclear civil works, reaffirming the company’s dominant positioning in critical infrastructure and long-cycle government capex projects. L&T’s expansion in renewable and transmission projects across the GCC region diversifies revenue streams, tapping into high-growth clean energy markets and improving long-term margin and earnings stability. We expect LT to report a CAGR of 20% in PAT over FY25-28.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
